Nuevolution publ : INTERIM REPORT Q2 2018

Interim report April - June 2018

NUEVOLUTION IN BRIEF

Stock

Market:Nasdaq, Stockholm

Ticker:NUE.ST

Number of shares:49,524,903

Market value (30.6.2018):SEK 820 million

Share price range (6M):14.32-20.50 SEK/share

Share price (30.6.2018):16.56 SEK/shareJuly-17

Major shareholders:Sunstone Capital, SEB Venture Capital, Stiftelsen Industrifonden and SEB Utvecklingsstiftelse

Pipeline

25

20

15

June-18

News flow(post release of first quarter 2018 report)

17 May: Nuevolution announces the publication of a second scientific article from the collaboration with Nobel Laureate Dr. Robert J. Lefkowitz

25 May: Nuevolution completes a directed issue raising gross proceeds of SEK 110 million

25 June:Trading of Nuevolution's shares start on the Nasdaq Stockholm main market

18 July:Amgen exercises opt-in right in first program from multiple target research collaboration with Nuevolution (post quarter)

Focus

• • Apply discovery platform against many disease targets allowing high upside and lower risk

• • Broad portfolio of pre-clinical progams

• • Keep select programs for own development and out-license select programs for revenue generation

Internal pipeline within:

• • Oncology

• • Immuno-oncology

• • Severe inflammatory indications

Agreements

17 agreements since 2004 with partners (incl. Merck, Novartis, GSK, Boehringer Ingelheim, Janssen, Amgen, Almirall)

App. SEK 530 million in realized partner income since 2004

Nuevolution

Founded:2001 in Copenhagen, Denmark

Industry:Healthcare, Biotech

Homepage:www.nuevolution.com

Successful up-listing to Nasdaq Stockholm main market

Summary for the three-month period ended 30 June 2018

Financial summary	April - June	January - June
SEK million	2018	2017	2018	2017
Revenue from contracts with customers	0.6	5.9	8.8	7.4
Total operating expenses, net	-34.4	-34.7	-65.5	-66.0
Operating result	-33.9	-28.8	-56.7	-58.6
Net result	-32.1	-27.3	-53.5	-56.3
Basic and diluted earnings per share (SEK)	-0.71	-0.64	-1.21	-1.31
Cash flow from operating activities	-33.5	-22.1	-59.1	31.8
Cash and cash equivalents	161.7	179.6	161.7	179.6
Business and R&D summary

• • Nuevolution successfully completed the planned up-listing to the Nasdaq Stockholm main market in June. This achievement represents a major goal for the company and is in line with previously announced goals. This is expected to support our ambitious intentions for further growth and value creation with prospect for a better reach towards larger institutional and international investors

• • Through a Directed Issue supporting the strengthening and diversification of our shareholder base, Nuevolution raised gross proceeds of SEK 110 million. The proceeds will be used for continued expansion of the pipeline, allow-ing more programs to be advanced, to advance specific programs towards becoming clinical development ready and to overall further strengthen the Company's deal making ability

• • Nuevolution's challenging small molecule "cytokine X" inhibitor program has now reached a stage of development, where target identity disclosure will support the start of the external promotion of our program. Cytokine X is Interleukin-17A (IL-17A). Blockade of IL-17A is a medically and market wise very well validated approach for treat-ment of an increasing number of human autoimmune diseases, which currently includes treatment for psoriasis, psoriatic arthritis and ankylosing spondylitis.

• • In the Bromodomain program, we have now nominated two promising compounds including NUE19796 as BET-BD1 pre-candidates. They are currently undergoing final explorations before progressing with candidate election.

  "The up-listing to the main market and the capital raise allowing for further shareholder strengthening and diversification represented two important financial goals during the quarter, which was matched by R&D immediately following end of quarter, when we could announce that Amgen has exercised its rights to opt-in to the first program of our joint collaboration",said Alex Haahr Gouliaev, CEO

Events occurred between 30 June and 22 August 2018

On 18 July, Nuevolution announced that Amgen exercises its opt-in right in first program from the multiple target research collaboration with Nuevolution. Subject to further successful development, and upon Amgen's discretionary decision to exercise its future option to license, Nuevolution will initially be eligible to receive a licensing fee of at least USD 10 million depending on the development stage of the program at licensing.

DISCLAIMER AND COPYRIGHT

The interim report has been prepared in both Swedish and English language. In case of discrepancy, it is the Swedish version which prevails. Where amounts are noted in EUR or USD and the equivalent amount also is noted in SEK, the exchange rate used is that of the transaction date.

Photo series: p1, p4, p6/7 by Nasdaq Stockholm. All other photos/illustrations by Nuevolution.

Message from the CEO

Dear shareholder, Dear reader,

At the release of this quarterly report, we are pleased to conclude achievement of three important goals - two during the quarter and one post end of quarter.

• • In Q2: Admission for trading on Nasdaq Stockholm's main market

• • In Q2: Diversification and strengthening of Nuevolution's share-holder base

• • Post Q2: Amgen uses its right to Opt-In to the first program

Following focused efforts and an intense process that was initiated some 12 months ago, and in line with the goals we announced in Sep-tember 2017, we were pleased to see that Nasdaq Stockholm's listing committee approved admission of Nuevolution's shares (ticker: NUE) for trading on Nasdaq Stockholm's main market. The first day of trad-ing was Monday June 25th, representing the achievement of a major goal for the company. The listing on the main market follows only after a significant scrutiny of the company's operations, evaluation of the company's fitness and assessment of skills and experience of board and management. Being allowed for trading on the main market is an honor, and it represents a quality stamp, that will support our ambitious intentions for further growth and value creation, and as a main market company, now with a better reach towards larger insti-tutional and international investors also. A prospectus was prepared in connection with the listing and approved and registered by the Swedish Financial Supervisory Authority. The prospectus is available on Nuevolution's website,www.nuevolution.com.

By end of May, Nuevolution announced the completion of a directed share issue with the gross proceeds of SEK 110 million. Through the directed issue, Nuevolution achieved a first step of one of its other key goals being the diversification and strengthening of its share-holder base with new investors joining the current owners. It is the intention to use the proceeds from the directed share issue for the continued expansion of the pipeline, allowing more programs to be advanced, to advance specific programs towards becoming clinical development ready and to overall further strengthen the Company's deal making ability. We welcome our new investors and thank the existing owners for their continued confidence.

Post end of quarter and on July 18th, we announced that Amgen had exercised its Opt-In right to a program that is part of its multiple tar-get research collaboration with Nuevolution. Amgen will now cover all further research and development costs in this specific program as incurred by both parties. Amgen's decision to Opt-In follows the demonstration of proof-of-concept in animal disease models, a mile-stone that ends the early research phase in accordance with the agree-ment, and the parties have now jointly commenced the late-stage research phase with the mutual goal of nominating a clinical develop-ment candidate. Subject to further successful development, and upon Amgen's discretionary decision to exercise its future option to license, Nuevolution will be eligible to receive a licensing fee of at least USD

10 million depending on the development stage of the program at licensing. During the potential further development and commercial-ization of the program, Nuevolution will also be eligible to receive success-based milestone payments. These combined payments could amount to up to USD 410 million. Besides this, Nuevolution is also entitled to receive royalties on future sales.

Nuevolution's challenging "cytokine X" inhibitor program has now reached a stage of development, where target identity disclosure will support the start of the external promotion of our program. The target is Interleukin-17A (IL-17A). Blockade of IL-17A is a medically and market wise very well validated approach for treatment of an increasing number of autoimmune diseases, which currently includes approved use for psoriasis, psoriatic arthritis and ankylosing spondyli-tis. In 2017, the total IL-17A antibody market value was approximately USD 2.6 billion. IL-17A is extremely difficult target to tackle drug dis-covery wise and has until now only been possible to address with anti-bodies, i.e. expensive injectable treatment, where safer shorter acting, orally and topical, and lower-cost treatment would be better and very attractive to the physician, the patient and the payer. In this quarterly report, we summarize the data from our Lead program, which aims to offer and may show the first promise for such a potentially improved treatment option in the future.

In line with the three major goals of our Grand Plan announced in Sep-tember 2017, we focus on progressing and expanding our partnered and own pipeline towards clinical development, while we also seek to realize further high value lead programs such as just mentioned above for IL-17A. During the quarter our R&D programs have progressed well in support of our business activities, and we continue to aim for closing of the next deal during 2018.

Stockholm, 22 August 2018

Alex Haahr Gouliaev, CEO Nuevolution AB (publ)

Investor Relations

Directed issue and listing on Nasdaq main market

LISTING ON MAIN MARKET - ENHANCING THE FUTURE PROSPECTS

The successful up-listing to the Nasdaq Stockholm main mar-ket in June 2018 represented the fulfillment of a long-term goal. In September 2017, we announced to the public, the intention to apply for listing on the main market before the end of the first half of 2018 as one of our major goals.

The up-listing is a major achievement for Nuevolution, which has required substantial efforts, time and investments. It rep-resents an important goal in support of our value creation going forward.

as they put their trust in the uniform quality, and expect the efficiency of a regulated market, which generally supports better trading volume and thereby secures correct pricing of the share and ability to trade. This is a significant benefit to all current and future investors in the company.

Besides this, the market has over the past year seen the index value of Pharma & Biotech companies on the Main Market increase by 50%, which is triple that of First North companies. Following the up-listing at the end of June 2018, we have noted that a number of institutional investors have started to buy in Nuevolution.

Recognised quality stamp

A main market listing is granted after a significant scrutiny of the company's operations, evaluation of the company's fit-ness, controls, processes and assessment of skills and experi-ence of board and management. The up-listing is therefore a quality stamp, which put Nuevolution in the major Scandina-vian investment league together with other larger companies and proves that we are capable of running the company at equal quality standards to the bigger players.

Enhanced partnering abilities

Being a main market company operating according to these uniform quality standards is recognized internationally and "expresses" professionalism, which may enhance our access to partners and strengthen negotiations and outcome.

Increased access to investors & increased trading

Further, being a main market company provides access to a substantially increased number of investors. Many larger insti-tutional and international investors, can and will, only consider investments in companies listed on a (regulated) main market,

Efficient & scalable business

Finally, our investment in processes and control structures have made the company much more efficient, and also scala-ble, which will benefit us as we grow and expand our pipeline and in the future with potential clinical development.

In total, we consider the main market listing a strengthening of Nuevolution's ability to execute on our strategy for long-term growth and value creation to the benefit of shareholders and the equally important aim, to discover better and safer treat-ment of cancer and severe inflammatory diseases.

DIRECTED ISSUE - STRENGTHENING AND DIVERSIFI-CATION OF THE SHAREHOLDER BASE

In late May and as fulfilment of a second key goal, Nuevolu-tion executed a directed share issue of 6.67 million new shares, providing the company with gross proceeds of SEK 110 million and improved shareholder diversification and strengthening through an increase in number of larger shareholders.

Together with the list change to the main market in June,